Riverside County Rental Market

6 Replies

I have been looking into finding an investment property somewhere in Riverside County, ideally something with 3 or more units. I was shocked to see what property values are there considering that LA and San Diego are not too far away. Additionally, it seems like a very stable rental market. What are your thoughts of long-term appreication in areas such as Murrieta, Temecula, and surrounding areas? As Southern California's housing market continues to appreciate over the next 10-20 years, do you think these areas have a lot of potential upsides?

I’d love to hear others responses. I’ve been wondering the same things. On paper, you can get a pretty good roi in areas of riverside and San Bernardino county, I just hate the idea of owning in some of these areas

Based off the areas history, (I would not only for hidden gem) unless you can pay down the debt substantially due to this area isn't as stable as it would seem and the tenant quality seems to be sub par based off what my wife and I have seen/heard from those operating in the area. The market is saturated with rentals, limited in certain areas(over priced), my wife and I are headed up there ourselves but we won't be buying. We have family that is stuck with two properties they can't unload, even renting them is rough. ROI is limited and it takes a small downturn in the economy at the micro or macro level and that dwindles even more. Especially with the flash point in the Middle East right now. With all that said if you find a gem then it is worth seriously considering but there is a difference between riverside, murrieta and Temecula. The further south and closer to Camp Pendleton/San Diego the better likely to pull military family's/government tenants or even San Diegians who worth on the northern edge who make the drive for work. Location is everything, when it comes to the desert region of SoCal. Once again though global and US economics heavily influence this area, since a lot of people who live are commuting vast distances (40-60) miles for work.

I still have confidence in these areas. Besides the property values holding steady and increasing, the rental prices have increased. Although the investment properties are a smaller inventory to select from for the %'s my hold investors look for, they are still available. 

As for the long term appreciation... I definitely have confidence, as long as you hold for more than 2 years. The school ratings are keeping the influx of buyers and renters. The majority of the schools are over 9, and many over 9.5. The high school sports are fairing very well in the state. There are many new homes still being built in Murrieta and further up the 15 and 215 in Menifee. I expect more schools to follow.

I have buyers coming in from all directions to get more for their money.  We also have a lot of movement, based on military families, in and out 2-3 years later. Helps with rentals too, for sure.

Having been in the San Diego area since 1986, after coming to Temecula in 2007, I don't think I would go back. There is plenty to do, amazing wineries, casinos, live music, theater, great restaurants, and tons of parks.

Originally posted by @James M. :

I’d love to hear others responses. I’ve been wondering the same things. On paper, you can get a pretty good roi in areas of riverside and San Bernardino county, I just hate the idea of owning in some of these areas

 My thoughts as well. Not sure how well property values hold-up during a downturn, but I am very curious to hear. It seems the closer you stay to San Diego, the higher the rental demand. As long as you can keep units rented, it seems promising on paper.

Originally posted by @Reba Marabotto :

I still have confidence in these areas. Besides the property values holding steady and increasing, the rental prices have increased. Although the investment properties are a smaller inventory to select from for the %'s my hold investors look for, they are still available. 

As for the long term appreciation... I definitely have confidence, as long as you hold for more than 2 years. The school ratings are keeping the influx of buyers and renters. The majority of the schools are over 9, and many over 9.5. The high school sports are fairing very well in the state. There are many new homes still being built in Murrieta and further up the 15 and 215 in Menifee. I expect more schools to follow.

I have buyers coming in from all directions to get more for their money.  We also have a lot of movement, based on military families, in and out 2-3 years later. Helps with rentals too, for sure.

Having been in the San Diego area since 1986, after coming to Temecula in 2007, I don't think I would go back. There is plenty to do, amazing wineries, casinos, live music, theater, great restaurants, and tons of parks.

 It would definitely be a long-term investment for me. I noticed the schools were ranked very high in those areas as well. Since it seems many people are leaving California to make their money go farther, I figure the people who don't want to leave California but want something cheaper, will move to these areas.

I would highly suggest speaking to bots on the ground property manager group in the area . Ask them vacancy for last downturn and rentals rates . That is always a good barometer to by.